TERMS OF PAYMENT

Terms of Payment generally determine the due date and discount calculation. Terms of Payment is
maintained in vendor master and customer master to default invoice level however this can be
changed at invoice level as well. Invoice level TOP gets priority during payment.

• For FI invoices payment terms is defaulted from “Accounting View” for customer and
vendor.
FB60/FB70
• For Purchasing invoices payment term is defaulted from “Purchasing View” in Purchase
Order
/ MIRO Invoices
• For Customer Invoices from SD side the payment is defaulted from “Sales Data” view.

T CODE: OBB8

Click on NEW ENTRIES

Give 4-digit TOP code (e.g., MNIC), no. of day (e.g., 30), select posting date (under base line date)
and save it.

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Note: assign the terms of payment to the vendor master data, use transaction code FB60 and post
a vendor invoice to test the due date calculation
TERMS OF PAYMENT (With Discount)

Terms of Payment generally determine the due date and discount calculation

T CODE: OBB8

Click on NEW ENTRIES

Give 4-digit TOP code (e.g., MNI1), no. of day and discount percentage as shown above and
select posting date (under base line date) and save it.

Note: assign the terms of payment to the vendor master data, use transaction code FB60 and post a
vendor invoice to test the due date calculation.

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TERMS OF PAYMENT (Fixed

Day) T CODE: OBB8

Requirement: Invoice should be due on every 15th of next month

Click on NEW ENTRIES

Give 4-digit TOP code (e.g., MNI2), fixed days and additional month (e.g., 15 and 1), select posting
date (under base line date) and save it.

Note: assign the terms of payment to the vendor master data, use transaction code FB60 and post a
vendor invoice to test the due date calculation

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TERMS OF PAYMENT (DAY LIMIT)

T CODE: OBB8

Click on NEW ENTRIES

SAVE it and click on NEW ENTRIES Again

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Give the details as shown above and select posting date (under base line date) and save it.

Note: assign the terms of payment to the vendor master data, use transaction code FB60 and post a
vendor invoice to test the due date calculation

TERMS OF PAYMENT (Installment

Payment)

T CODE: OBB8

Requirement: Payment should be in two installments (60% in 1st and 40% in 2nd)

Click on NEW ENTRIES

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Give 4-digit TOP code (e.g., MNII), apply check mark on installment payment, select posting date
(under base line date) and save it.
Create additional terms of payment as per requirement.

Note: above scenario consists of two installments, hence two additional TOP need to be

created. CREATE FIRST INSTALLMENT TERMS OF PAYMENT AS SHOWN BELOW.

Click on NEW ENTRIES

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Give 4-digit TOP code (e.g., MNI4), no. of day (e.g., 15) select posting date (under base line date)
and save it.

CREATE SECOND INSTALLMENT TERMS OF PAYMENT AS SHOWN BELOW

Click on NEW ENTRIES

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Give 4-digit TOP code (e.g., MNI5), no. of day (e.g., 30) select posting date (under base line date)
and save it.

Link installment terms of

payment: Transaction code –

OBB9

Click on NEW ENTRIES

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Save it.

Note: assign the terms of payment to the vendor master data, use transaction code FB60 and
post a vendor invoice to test the due date calculation.

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